Mar 5, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

How To Be A Contrarian Investor

Posted: 05 Mar 2010 03:50 AM PST

“Whenever you find yourself on the side of the majority, it’s time to pause and reflect.”
- Mark Twain
Contrarian investors believe that following the crowd leads to losses and missed opportunities. When the crowd reacts to news or speculation about a stock or the market, the price can rise of fall so far, that has mis-priced the value of the company or the market.

For example, a company finds it must recall a product due to a design or manufacturing problem. The recall causes widespread … [visit site to read more]


A Temporary Pause In Emerging Market ETFs?

Posted: 05 Mar 2010 02:05 AM PST

Emerging market exchange traded funds (ETFs) saw their asset levels dip last month, but that doesn’t necessarily mean the run is over. In fact, if inflation takes hold and that old risk appetite comes back, emerging markets could be directly in line to benefit.

According to Amit Lodha, manager of the Fidelity Global Real Assets fund, prices could surge over the next three to five years after the Occident embraced high debt burdens and loose monetary policies, writes Will Roberts for … [visit site to read more]

The Dominos Of Sovereign Defaults

Posted: 05 Mar 2010 01:01 AM PST

The bad news for Greece is that despite some help from abroad, and some attempts at internal reform, investors are still leery of the troubled state. The good news, if you can call it that, is that they will soon have company in the penalty box.

Now that investors have come face-to-face with the reality of sovereign default in the developed world, greater scrutiny will befall those countries with fiscal conditions similar to Greece. The United Kingdom is a cause of great concern, with a debt … [visit site to read more]

Video: NY Appliance Swap Out Program Expanded

Posted: 05 Mar 2010 01:00 AM PST

New York's Great Appliance Swap Out program has over $8.6 million in available funds for energy efficient home appliance rebates. The program is supported by federal stimulus funds. … [visit site to read more]

Yemen’s Push Into The Gas Sector Fails To Stimulate Great Excitement And Raises Disturbing Questions

Posted: 05 Mar 2010 12:01 AM PST

With Yemen’s oil revenues plunging, the government’s push into the gas market seemed like an economic saving grace for a state wracked by poverty and terrorism, but analysts warn more thought should be given to carving out the country’s post-petroleum era.

The infamous Christmas Day bomber’s attempts to blow up a jet approaching Detroit - which Yemen-based al Qaeda in the Arabian Peninsula claimed responsibility for - has drawn unwanted attention to the country’s vulnerability to … [visit site to read more]

Is US Treasury’s Herb Allison Lying When He Says There Are No Financial Firms Now Guaranteed As “Too Big To Fail”?

Posted: 04 Mar 2010 11:01 PM PST

According to testimony Thursday morning from Treasury official Herb Allison, currently charged with overseeing the management of the TARP, there are no financial firms now guaranteed as 'too big to fail.’

What rock did Herb just crawl out from?

The Wall Street Journal addresses Herb’s ridiculous comment in writing, Treasury Official: 'No Too Big to Fail Guarantee’ for Big Financial Firms:
There is no U.S. government guarantee to protect the largest financial firms, a Treasury … [visit site to read more]

Google Highlights The Importance of Watching Prior Price Lows

Posted: 04 Mar 2010 10:01 PM PST

I wanted to follow-up and highlight an interesting point in the recent price rally in Google (NASDAQ:GOOG) - specifically with regard to the price bounce off the key 'last-support’ level I previously mentioned.

It’s an interesting lesson that’s worth repeating - here’s the chart:

I had mentioned previously that the $520 level was the confirmation point in the otherwise ominous signs, including a bear flag short-sell entry (red arrow at $545).

Aggressive (risk-seeking) traders … [visit site to read more]

ECB’s Trichet Full Of Praise For Greece

Posted: 04 Mar 2010 09:01 PM PST

At its monthly press conference, European Central Bank (ECB) President Trichet announced a further gradual reduction of emergency lending facilities. Focus of the meeting was the fiscal austerity package passed by Greece’s parliament the previous day. Unlike previous commentaries, Trichet was full of praise for Greece, saying it was “extremely important that the decisions taken by Greece could be convincing because they would credibilize [sic] the adjustment program that was absolutely … [visit site to read more]

Bumpy Road Ahead For Retail ETFs?

Posted: 04 Mar 2010 08:01 PM PST

The retail sector posted its third consecutive monthly sales gain as department stores posted sales revenues which beat analyst expectations; however, the road ahead still remains bumpy.

Department store giant Macy’s Inc. (NYSE:M) as well as discount store Target (NYSE:TGT), both reaped the benefits of an increase in traffic and a jump in the average amount spent by consumers, pushing increases in sales by 4% and 2.4%, respectively.    Additionally, Wal-Mart (NYSE:WMT) stated that it is … [visit site to read more]

Van Eck Files Two New Fixed Income ETFs

Posted: 04 Mar 2010 07:25 PM PST

Van Eck, an ETF issuer specializing in hard asset and international equity funds, has registered two new fixed income ETFs with the SEC. Both of the new funds are relatively unique; the Market Vectors Emerging Markets Local Currency Debt ETF would join only a handful of products offering U.S. investors exposure to international debt markets, while the Market Vectors Investment Grade Floating Rate ETF would represent a new innovation in the fixed income space. 
The local currency debt ETF … [visit site to read more]

Metal Tiger

Posted: 04 Mar 2010 07:01 PM PST

A sign of the times is seen in the deal the CME Group (NASDAQ:CME), umbrella for the Chicago and NYMEX commodity bourses, is buying 90% of the Dow Jones index system from News Corporation (NYSE:NWS). The traditional newspaper business is having a tough go competing with the internet, which prompts the sale. One could argue this is another example of the commodities space taking up some of the ground opened by the past decade’s bear market for equities. Others might point out that Chicago will be … [visit site to read more]

Video: The Day Ahead: U.S. Employment Report

Posted: 04 Mar 2010 07:00 PM PST

The stories, data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more]

Forex Trading: USD/JPY In A Technical Week

Posted: 04 Mar 2010 06:41 PM PST

In an extremely quiet Asian session ahead of tomorrows much anticipated US Non-Farm Payroll release, we see that the USD/JPY pair has been trading between the 50% and 61.8% retracement the entire week, using the those levels as support and resistance. It will be interesting to see if that range is broken following tomorrow mornings US … [visit site to read more]

Three Thousand Words On CRE

Posted: 04 Mar 2010 06:09 PM PST

If a picture is worth a 1,000 words, then three images detailing the trouble still brewing in the commercial real estate market must be worth, er, three times as much. Right? (Unless, of course, you’re a permabull who can’t – or refuses to — see just how things are adding up.)
1. From Realpoint Research’s most recent “Monthly Delinquency Report” (also featured in my latest “Market Observation” for Financial Sense Online):

2. From Markit, the AA-rated tranche of a synthetic … [visit site to read more]
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